09 October 2013
One of My friend has availed an housing loan from N B F C (Non Banking Financial Corporation). he is paying E M I Comprising of Principal amount and interest thru his S B account maintained with a Nationalised Bank. I would like to know whether the provision of Section 194 A ( T D S on interest ) applicalbe in his case. Kindly guide me in the above.
As suggested by Ramesh Ji, as such individuals are not required to deduct TDS on repayment of interest on housing loan to NBFC.
However, make sure that such individual if in business or profession has not crossed total sales, gross receipts or turnover from the business or profession carried on by him beyond the the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid. Else he shall be liable to deduct TDS under 194A.
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